Business Model for Used Servers

cnet newsblog has an article about when used servers cost most than new

GALWAY, Ireland--Think of the Multis Group as sort of the Antiques Roadshow of the server world.

The Galway, Ireland-based company specializes in refurbishing, and then selling, used servers. Refurbished PCs and servers are increasingly in vogue because remanufacturing represents a more environmentally efficient way to recycle old electronics than harvesting components from these old machines or melting them down for raw materials.

Multis Group logo

Multis, in fact, plans to open a 70,000-square-foot facility in Union City, Calif., later this month to refurbish and sell servers for North American customers. That marks a reversal in the usual U.S.-Ireland tech relationship.

Unlike refurbished PCs and cell phones, servers maintain a high resale value that can equal or even exceed the cost of new equipment, said Multis CEO and founder Sean Keenan. Why? Manufacturers might produce only a single server model for 18 months to two years. Corporate customers, however, often don't want to migrate to new hardware that quickly. Instead, they move at a three- to seven-year pace. As a result, they often have a need for discontinued equipment.

People should consider contacting Multis to discuss end of life for their servers and an eWaste plan as part of creating a green data center.